You Are Long Both a Put Option and a Call

question 33

Essay

You are long both a put option and a call option on Rockwood stock with the same expiration date.The exercise price of the call option is $40 and the exercise price of the put option is $30.Graph the payoff of the combination of options at expiration.

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Definitions:

Intimacy

An emotional and physical closeness shared between individuals, often involving feelings of attachment, love, and trust.

Emotional Support

Assistance provided through empathy, concern, and care to help individuals cope with emotional distress and challenges.

Friends

Individuals with whom one has a mutual bond of affection or personal regard, often characterized by support and companionship.

Peer Group

A social group of people typically of the same age, social status, and interests, influencing behavior and attitudes.